J.P. Morgan lowered its price target for Tesla to $120 from $135, citing expectations of a second consecutive year of declining vehicle deliveries and shifting sentiment among consumers toward the electric vehicle maker.
The brokerage now forecasts Tesla will deliver approximately 1.78 million vehicles in 2024, a 1% decline from last year. Analysts also highlighted growing backlash against the brand, including protests at Tesla stores, sales boycotts, and an increase in second-hand Tesla vehicles being resold by previous owners.
See also: Tesla Aims to Double U.S. Vehicle Production Within Two Years, Says Musk
“There have been reactions toward the brand such as protests at Tesla stores across the U.S. and around the world, sales boycotts, and jettisoning already purchased vehicles in the second-hand market,” J.P. Morgan stated in its report.
Activists have recently organized “Tesla Takedown” protests, voicing their opposition to CEO Elon Musk’s involvement in widespread reductions to the U.S. federal workforce and the cancellation of government contracts for global humanitarian aid.
U.S. President Donald Trump expressed support for Musk on Tuesday, stating that violence against Tesla dealerships would be classified as domestic terrorism.
See also: Tesla’s Future in Question as Elon Musk Faces Growing Criticism
Tesla’s stock, which hit an all-time high in December, has since lost most of its post-election gains. The stock suffered a 15.4% decline on Monday, marking its worst one-day drop in four-and-a-half years, though it has since rebounded 10%.
According to LSEG data, the median analyst price target for Tesla shares remains significantly higher at $370.